Question
Data on price of Y quantity demand for X when income is 100,and quantity demand for X when income is 200 are given in the
Data on price of Y quantity demand for X when income is 100,and quantity demand for X when income is 200 are given in the following table. The price of X is fixed at $7.
Price of Y QDx. QDx
Income$100. Income$ 200
0. 114.5. 46.5
1. 115. 47.8
2. 115.5. 49.1
3. 116. 50.4
4. 116.5. 51.7
5. 117. 53
6. 117.5. 54.3
7. 118. 55.6
8. 118.5. 56.9
9. 119. 58.2
10. 119.5. 59.5
A Calculate income elasticity of demand X using the midpoint method when income increases from $100 to $200 and when price of Y is fixed at $9 explain answer
B Calculate cross price elasticity of demand for X when price of Y decreases from $9 to $8 and when income is $100.Explain your answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started